Case History – SBA v MSPLC

Background

SBA was a scaffolding contractor who had acquired the assets of PASL. At the time of PASL entering into insolvency proceedings they had several ongoing contracts. The ongoing contract or work in progress were sold to SBA as part of the agreement they had entered into with the insolvency practitioners who had conduct of the administration of PASL. The ongoing contracts had to be novated in favour of SBA and the insolvency practitioner was unable to guarantee the contracts could be novated in favour of SBA.

MSPLC was a main contractor where PASL has a substantial scaffolding installation. MSPLC refused to novate the contract in favour of SBA due to SBA being a new business and MSPLC’s quality programme stipulates that any sub-contractor must have been in existence for at least two years. MSPLC instructed a third party scaffolding contractor to service their requirements until the end of the contract.

Actions

ICL Commercial Law was instructed to pursue a claim against MSPLC. ICL Commercial Law advised that MSPLC was unlawfully using SBA’s scaffolding and that a claim should be issued in the High Court pursuant to the Torts (interference with good act) 1974.

Result

MSPLC was advised by one of the largest solicitor’s firms in the UK. MSPLC entered into negotiations with MSPLC resulting in MSPLC paying £30,000.00 to SBA.

MSPLC ensured SBA’s scaffolding stock was made available for collection.